BETAPRO SP500 VIX ST FTRS 2X DLY BULL T.HVU

Wtf

[borrowedlife]

Why are we red?

[borrowedlife]

Quite the disconnected B!tch today

[stinkinason]

I don't get it 

[MayorRobFord]

There's that decay in the futures themselves. S&P can stay the same or even a bit lower, and HVU will drop. The futures are almost always higher than the spot price, and decay as you get closer to expiry, then the same thing happens with the next contract.

[Shlinker_]

Yep, exactly, contango is keeping us down right now. We need volitile drops to make this kick back to what we'd all like. Contango refers to a situation where the future spot price is below the current price, and people are willing to pay more for a commodity at some point in the future than the actual expected price of the commodity.

[TheCapitalistBear]

S&P is like the villian in a 3hr movie that can be blown up 5 times, have no limbs left, and still won't die! haha I saw some confusion regarding HVU price action today. Contango is part of it (currently a whopping 16%), however the larger reason is HVU holdings are 92% May contracts, which actually fell just over 1% today. Keep in mind the investing.com quote for VIX futures shows them

[Murraylaplante]

Great post CB Yes I can see the heavy Contango last couple days but like you say the vix showing up% in may ,June even farther.Just need a negative news from Opec and maybe will start the slide for the S&P GLTA

[Murraylaplante]

Cb Now that April contracts are almost done,this is the best time for moves with HVU as there is little Decay? I no it really sucks when the oil is down 3% and TSX is down just slightly but yet HVU is down the most...Grrrrr... Iam really thinking on day trading a bit to get my average down a bit as mine is very close to yours,,been holding on but with the swings in price the last weeks I could

[TheCapitalistBear]

Is post rollover the best time for a move? Depends. It can be if contango is eaten up early and the move jump starts. However, with the massive 16% contango; current month (April) futures and next month (May futures), will begin to come together on price otherwise there would be an arbitrage opportunity from the rollover. This can cause the May futures to drop (like we're seeing now) and grow

[DSurfer]

Tks TheCapitalistBear for your great informative post ! When I really get depressed watching HVU I used to dump the whole thing. Just to see it sky rocket the next day or so. With frustration I don't buy it back, witnessing that I just missed the boat. Ho yes, once again... Then I see HVU going over my average price and I get even more frustrated. Be extremely careful with this decaying and

[TheCapitalistBear]

I hope they help somewhat. And the experiences of dumping only to watch it reverse are VERY common. In fact that's exactly what the market aims to do! When all the HVU bulls switch to bears, there's no one left to sell and thus the price goes up. It feels like it purposely tries to mess with us because it really is trying to! Also, if I'm an S&P bear and I feel the pain, I can